Financial Management - Study Mode

[#736] _______ uses a computer program in an attempt to imitate the brain in analysing securities.
Correct Answer

(D) Neural networks

Explanation

Solution: Neural networks uses a computer program in an attempt to imitate the brain in analysing securities. A neural network is a series of algorithms that endeavors to recognize underlying relationships in a set of data through a process that mimics the way the human brain operates.

[#737] The factor(s) which affect(s) P/E ratio is/are __________.
Correct Answer

(D) All of the above

Explanation

Solution: The factors that affects P/E ratio are Growth rate, Debt proportion and Retention ratio.

[#738] The difference between the cash price and the futures price on the same asset or commodity is known as the________________.
Correct Answer

(A) basis

Explanation

Solution: The difference between the cash price and the futures price on the same asset or commodity is known as the basis. It is a crucial concept for portfolio managers and traders because this relationship between cash and futures prices affects the value of the contracts used in hedging.

[#739] Long -term solvency is indicated by
Correct Answer

(B) Debt-equity ratio

Explanation

Solution: Long -term solvency is indicated by Debt-equity ratio. The debt-to-equity (D/E) ratio is calculated by dividing a company's total liabilities by its shareholder equity. These numbers are available on the balance sheet of a company's financial statements.

[#740] Which of the following is/are the problem(s) encountered in financial statement analysis?
Correct Answer

(D) All of the above

Explanation

Solution: Development of benchmarks, Window dressing and Interpretation of results are the problems encountered in financial statement analysis.